Just six months after its most recent aged-care acquisition,
chief executive Pat Grier announced a strategic review of Ramsay's
operations sparked by the $1.4 billion purchase of 51 Affinity
Health hospitals in April.

But despite the attraction of the growing aged-care sector,
given government funding and an ageing population, Mr Grier said he
now saw a situation whereby "we'd want to get out of aged
care".

He told investors the review would focus on whether Ramsay could
expand the aged-care business "without using too much of our
dollars because, if you've got a dollar, it's more likely better
spent on Affinity than aged care".

Asked later if that meant Ramsay may quit the business, Mr Grier
told the Herald: "If we find that the Affinity hospitals
need a lot of money then we would more than likely say that
we'd be better to put that money into Affinity than into aged care
which would mean that we'd want to get out of aged care.

"Our preferred situation at this stage would be to stay in aged
care and continue to grow off- balance sheet."

The review comes only six months after Ramsay acquired five
aged-care centres for $51 million from Ellis Residential Care. Mr
Grier cast doubt on whether Ramsay's option over further Ellis
centres would be exercised.

"We'll look at that in the total picture as to what we're going
to do with our dollars," he said.

While not wanting to pre-empt the review, he further fanned
speculation on aged care's future, saying it was unlikely recent
hospital acquisitions, including those from the $125 million
Benchmark deal, would be divested.

He denied the review was sparked by making too many acquisitions
last year.

Investors said Ramsay would more likely "sideline" investment in
aged care while the group bedded down the Affinity acquisition
rather than quit the business.

Mr Grier said a deal over the previously announced re-sale of 19
Affinity hospitals due to competition concerns was expected within
weeks. Negotiations were continuing with private equity investors
CVC and Ironbridge and other interested parties.